Correlation Between Fino Payments and Mahindra Logistics
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By analyzing existing cross correlation between Fino Payments Bank and Mahindra Logistics Limited, you can compare the effects of market volatilities on Fino Payments and Mahindra Logistics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fino Payments with a short position of Mahindra Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fino Payments and Mahindra Logistics.
Diversification Opportunities for Fino Payments and Mahindra Logistics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fino and Mahindra is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fino Payments Bank and Mahindra Logistics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahindra Logistics and Fino Payments is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fino Payments Bank are associated (or correlated) with Mahindra Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahindra Logistics has no effect on the direction of Fino Payments i.e., Fino Payments and Mahindra Logistics go up and down completely randomly.
Pair Corralation between Fino Payments and Mahindra Logistics
Assuming the 90 days trading horizon Fino Payments Bank is expected to generate 1.67 times more return on investment than Mahindra Logistics. However, Fino Payments is 1.67 times more volatile than Mahindra Logistics Limited. It trades about -0.04 of its potential returns per unit of risk. Mahindra Logistics Limited is currently generating about -0.21 per unit of risk. If you would invest 38,095 in Fino Payments Bank on September 1, 2024 and sell it today you would lose (1,065) from holding Fino Payments Bank or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fino Payments Bank vs. Mahindra Logistics Limited
Performance |
| Timeline |
| Fino Payments Bank |
| Mahindra Logistics |
Fino Payments and Mahindra Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fino Payments and Mahindra Logistics
The main advantage of trading using opposite Fino Payments and Mahindra Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fino Payments position performs unexpectedly, Mahindra Logistics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mahindra Logistics will offset losses from the drop in Mahindra Logistics' long position.| Fino Payments vs. Rajnandini Metal Limited | Fino Payments vs. Pilani Investment and | Fino Payments vs. Coffee Day Enterprises | Fino Payments vs. KNR Constructions Limited |
| Mahindra Logistics vs. Agro Tech Foods | Mahindra Logistics vs. Parag Milk Foods | Mahindra Logistics vs. Omkar Speciality Chemicals | Mahindra Logistics vs. Privi Speciality Chemicals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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